First Option Bank is an Authorised Deposit Taking Institution (ADI).
We are prudentially regulated by the Australian Prudential Regulatory Authority (APRA).All ADI’s including First Option are subject to the depositors protection provisions of the Banking Act of 1959.
The Financial Claims Scheme
First Option Bank is a safe and secure financial institution worthy of your confidence. Our success is built upon sound business practices and our commitment to protecting member-owned assets.
First Option meets the same strict, legally enforceable standards as banks under the Banking Act regulated by the Australian Prudential Regulation Authority (APRA). Member-owned banking institutions are prudent and responsible lenders that have the lowest levels of arrears in the Australian lending market.
The Financial Claims Scheme (FCS) is an Australian Government Scheme that guarantees protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.
Under the Financial Claims Scheme (FCS), certain deposits are protected up to a limit of $250,000 for each account holder at any credit union, bank, building society or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).
While Member-owned banks (like First Option) and the big banks may look similar and offer similar products, there is a distinct difference. Big banks exist to make profits and pass them on to shareholders. We exist to serve our Members and invest all profits back into the business.
First Option is committed to providing superior service, while maintaining your trust and confidence.
More about the Financial Claims Scheme
The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by APRA. In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.
How is the Financial Claims Scheme limit applied?
The FCS limit of $250,000 applies to the sum of an account holder’s deposits under the one banking licence.
Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250,000 FCS limit, and this includes accounts with any other banking businesses that the licences banking institution may operate under a different trading name.
First Option does not have any banking business operating under any other trading names.
The Government Deposit Guarantee applies to our:
- Access Accounts
- Savings Accounts
- Investment Accounts